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Item C10 BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY Meeting Date: August 19, 2009 Bulk Item: Yes XX No Division: Airports Staff Contact Person: Peter Horton/Pedro Mercado AGENDA ITEM WORDING: Approval of a Lease Amendment to the Airport Gift Shop lease with Ms. Gina Borrego and Last Chance Gifts, LLC at the Key West International Airport. ITEM BACKGROUND: The County originally entered into an airport Gift Shop lease agreement with Diane Heberle on November 10, 1993 for a period of 7 years. The lease was extended by way of a lease extension agreement dated April 19, 2000 for an additional 16 years. Ms. Heberle sold the business to Ms. Gina Borrego and transferred all rights, title and interest to the leasehold to Ms. Borrego by way of a Consent To Assignment Of Lease which was approved on October 17,2007. Ms. Borrego is now requesting an opportunity to lease additional retail space which has become available as a result of the recent airport terminal expansion and renovation project. PREVIOUS RELEVANT BOCC ACTION: Approved the original lease at the November 1993 board meeting, approved the lease extension at the April 2000 board meeting and approved the consent to assignment oflease at the October 2007 board meeting. CONTRACT/AGREEMENT CHANGES: N/A STAFF RECOMMENDATIONS: Approval TOTAL COST: N/A BUDGETED: Yes No COST TO COUNTY: N/A SOURCE OF FUNDS: N/ A REVENUE PRODUCING: Yes XX No AMOUNT PER MONTH $40.93 per SQuare ft plus %5 of e:ross revenue for the leasehold in the airport passene:er ticketine: area and $33.40 per SQuare foot plus %5 of e:ross revenue or an annual minimum e:uarantee of $20.000. whichever is e:reater. for the leasehold in the oassene:er departure e:ate area. APPROVED BY: County Atty _ OMB/Purchasing _ Risk Management _ l?f.AI~\Ilo. rpt,N~1"9 P8.4ldlAr9 DOCUMENTATION: Included Not Required_ DISPOSITION: AGENDA ITEM # MONROE COUNTY BOARD OF COUNTY COMMISSIONERS Contract with: Last Chance Gifts, LLC CONTRACT SUMMARY Contract # Effective Date: Execution Expiration Date: 9/30/16 Contract Purpose/Description: Amendment to lease agreement Contract Manager: Peter Horton (name) for BOCC meeting on: 8/19/09 # 5200 (Ext. ) Airports - Stop # 5 (Department! Stop) Agenda Deadline: 8/4/09 CONTRACT COSTS Current Year Portion: n/a Account Codes: n/a Total Dollar Value of Contract: revenue producing Budgeted? n/a Grant: No County Match: No Estimated Ongoing Costs: n/a (not included in dollar value above) ADDITIONAL COSTS For: . (eg. maintenance, utilities, janitorial, salaries, etc.) Date In Airports Director E.J.3.--,Oi Risk Management ~~_ O.M.BJPurchasing ~~_ County Attorney ~ ~_ Comments: CONTRACT REVIEW Changes Needed Reviewer Date Out Yes No ~ff ( )-1<") <r '~/01 Peter HortOpt ( ) ( ) ~_/- eN ch~ ( ) ( ) for Risk Man~ement ~~- e.v~ for OMB ( ) ( ) ~I.A, 9 _/~- County Attorney AMENDE NT TO LEASE AGREEMENT Last Chance Gifts, LLC. THIS AMENDMENT (hereafter Amendment) is made and entered into this 19th day of August, 2009 by and between Monroe County, a political subdivision of the State of Florida, whose address is Gato Building, I 100 Simonton Street, Key West, FL 33040 (hereinafter "County", "Lessor" or "Owner"), and Last Chance Gifts, LLC., a Florida limited liability company, whose address is 74 Bay Drive, Key West, Fl. 33040 (hereinafter "Tenant" or "Lessee"). WHEREAS, on the loth day of November 1993, the County entered in to a lease (hereinafter Original Lease) with the Lessee's predecessor in interest. A copy of the original lease is attached as Exhibit A and made a part of this amendment; and WHEREAS, on the 19th day of April, 2000, the County entered in to a Lease Extension Agreement with the Lessee's predecessor in interest extending the term of the original lease for an additional 16 years. A copy of the Lease Extension Agreement is attached as Exhibit B and made a part of this amendment, and WHEREAS, on the 17th day of October 2007, Lessee's predecessor in interest transferred all rights, title, interest and obligations to the leasehold by means of a Consent To Assignment Of Lease to Lessee. A copy of the Consent To Assignment of Lease is attached as Exhibit C and made a part of this amendment, and WHEREAS, Key West International Airport has been renovated and expanded and now contains additional retail space, and WHEREAS, Last Chance Gifts, LLC. currently leases retail space in the airport passenger check-in/ticketing area and has requested an opportunity to lease additional retail space in order to provide a gift shop in the departure gate area, and WHEREAS, the parties have come to an agreement as to the terms for leasing the additional retail space, now, therefore, IN CONSIDERATION of the premises and of the mutual covenants and agreements herein contained, and other valuable considerations, the parties agree as follows: SECTION 1. Article I - Premises, subparagraph B. Leasehold of the original agreement is amended to read as follows: B. LEASEHOLD. Lessee does hereby Lease, for its exclusive use the following described leasehold property's: 1. A 741 square foot retail space located in the passenger check-in/ticketing area within the new passenger terminal building at Key West International Airport as shown in exhibit 0-1 attached hereto and made a part hereof. 2. A 390 square foot retail space located in the passenger departure gate area within the renovated pre-existing passenger terminal building at Key West International Airport as shown in exhibit 0-2 attached hereto and made a part hereof SECTION 2. ARTICLE II - TERM of the original agreement is amended to read as follows: This lease and all rights herein granted Lessee shall become operative and effective on October I, 1993. All rights herein granted for the use and operation of both gift shop leaseholds shown in exhibits 0-1 and 0-2 shall terminate on September 30, 2016 unless sooner terminated as hereinafter provided. SECTION 3. Article III - RENTALS AND FEES, subparagraph A.I ofthe original agreement is amended to read as follows: I. Rent for 741 square feet at the check-in/ticketing area within the new passenger terminal building, as shown in exhibit 0-1, to be used as a gift shop shall be $40.93 per square foot per annum plus tax, including electricity. Rent for 390 square feet at the passenger departure gate area within the renovated pre-existing passenger terminal building, as shown in exhibit 0-2, to be used as a gift shop shall be $33.40 per square foot per annum plus tax, including electricity. Rental rates are subject to revision each year in accordance with the airport standard rates and charges. SECTION 4. Article III - RENTALS AND FEES, subparagraph A.2 of the original agreement is amended to read as follows: 2. The Lessee agrees to pay: i. 5% of the annual gross revenues (gross revenue payment) generated by Lessee's gift shop operations at the check-in/ticketing area within the new passenger terminal building, as shown in exhibit 0-1, and ii. 5% of the annual gross revenues (gross revenue payment) or an annual guaranteed minimum of $20,000 (guaranteed minimum payment), whichever is 2 greater, for Lessee's operations at the passenger departure gate area within the renovated pre-existing passenger terminal building, as shown in exhibit D-2. Annual gross revenues are determined on a calendar year basis. A calendar year shall run from January I st through December 31 st inclusive. Payment of charges under this subparagraph may be made annually or in monthly installments. If payments are made in monthly installments, Lessee shall remit, at a minimum: iii. 1/12 of the guaranteed minimum payment ($1,666.66) for Lessee's operations at the passenger departure gate area within the renovated pre-existing passenger terminal building, as shown in exhibit D-2 on an arrears basis, and iv. 1/12 of the estimated gross revenue payment generated by Lessee's gift shop operations at the check-in/ticketing area within the new passenger terminal building, as shown in exhibit D-l. (The estimated gross revenue payment shall be based on the gross revenue generated the prior year.) Payment shall be made no later than the 5th day of the month payment is due, i.e. January payment by February 5, February by March 5, etc. At the end of the calendar year if the payments made by Lessee for Lessee's operations at the passenger departure gate area within the renovated pre-existing passenger terminal building, as shown in exhibit D-2 do not equal $20,000 or 5% of gross revenues, whichever is greater, Lessee shall remit the difference by February 28 of the year subsequent to the calendar year for which the charge is due. Additionally, at the end of the calendar year if the payments made by Lessee for Lessee's operations at the passenger departure gate area within the renovated pre- existing passenger terminal building, as shown in exhibit D-2 do not equal 5% of gross revenues, Lessee shall remit the difference by February 28 of the year subsequent to the calendar year for which the charge is due. For purposes of verifying the appropriate amount of payment, Lessee shall provide a statement of account which shows the gross revenue generated at Lessee's operations at the passenger departure gate area within the renovated pre-existing passenger terminal building, as shown in exhibit D-2 and the gross revenue generated at Lessee's gift shop operations at the check-in/ticketing area within the new passenger terminal building, as shown in exhibit D-l by January 31 of the year subsequent to the calendar year for which the charge is due. If payment of charges under this 3 subparagraph is made once a year then it shall be made no later than February 28 of the year subsequent to the calendar year for which the charge is due. SECTION 5. Article XIV - INDEMNITY of the original agreement is amended to read as follows: Notwithstanding any minimum insurance requirements prescribed elsewhere in this lease agreement, Lessee shall defend, indemnify and hold the County and the County's elected and appointed officers and employees harmless from and against (i) any claims, actions or causes of action, (ii) any litigation, administrative proceedings, appellate proceedings, or other proceedings relating to any type of injury (including death), loss, damage, fine, penalty or business interruption, and (iii) any costs or expenses (including, without limitation, costs of remediation and costs of additional security measures that the Federal Aviation Administration, the Transportation Security Administration or any other governmental agency requires by reason of, or in connection with a violation of any federal law or regulation, attorney's fees and costs, court costs, fines and penalties) that may be asserted against, initiated with respect to, or sustained by, any indemnified party by reason of, or in connection with, (A) any activity of Lessee or any of its employees, agents, contractors or other invitees on the Airport during the term of this lease, (B) the negligence or willful misconduct of Lessee or any of its employees, agents, contractors or other invitees, or (C) Lessee's default in respect of any of the obligations that it undertakes under the terms of this lease, except to the extent the claims, actions, causes of action, litigation, proceedings, costs or expenses arise from the intentional or sole negligent acts or omissions of the County or any of its employees, agents, contractors or invitees (other than Lessee). Insofar as the claims, actions, causes of action, litigation, proceedings, costs or expenses relate to events or circumstances that occur during the term of this lease, this Article will survive the expiration of the term of this lease or any earlier termination of this lease. SECTION 6. Article XXI - INSPECTION BY LESSOR of the original agreement is amended to read as follows: The County and its authorized officers, employees, agents, contractors, subcontractors and other representatives shall have the right to enter upon the leased premises for the following purposes: 4 a) to inspect the leased premises at reasonable intervals during regular business hours (or at any time in case of emergency) to determine whether Lessee has complied and is complying with the terms and conditions of this agreement with respect thereto; b) to perform essential maintenance, repair, relocation, or removal of existing underground and overhead wires, pipes, drains, cables and conduits now located on or across the leased premises, and to construct, maintain, repair, relocate, and remove such facilities in the future as necessary to carry out the Master Plan of development of the Airport; provided, however, that said work shall in no event unduly interfere with the operations of Lessee and, provided further, that the entire cost of such work, including but not limited to the cost of rebuilding, removing, relocating, protecting or otherwise modifying any fixed improvements at any time erected or installed in or upon the leased premises by Lessee, the County or third parties, as a result of the exercise by the County of its rights hereunder, and all damage to such fixed improvements caused thereby, shall be borne by the County. SECTION 7. Article XXVII - NON-DICSRIMINATION CLAUSE of the original agreement is amended to read as follows: Lessee and Lessor agree that there will be no discrimination against any person, and it is expressly understood that upon a determination by a court of competent jurisdiction that Lessee has discriminated against any person, this lease agreement automatically terminates without any further action on the part of any party, effective the date of the Court order. Lessee agrees to comply with all Federal and Florida statutes, and all local ordinances, as applicable, relating to nondiscrimination. These include but are not limited to: I) Title VI of the Civil Rights Act of 1964 (PL 88-352) which prohibits discrimination on the basis of race, color or national origin; 2) Title IX of the Education Amendment of 1972, as amended (20 USC ss. 1681-1683, and 1685-1686), which prohibits discrimination on the basis of sex; 3) Section 504 of the Rehabilitation Act of 1973, as amended (20 USC s. 794), which prohibits discrimination on the basis of handicaps; 4) The Age Discrimination Act of 1975; as amended (42 USC ss. 610 1-6107) which prohibits discrimination on the basis of age; 5) The Drug Abuse Office and Treatment Act of 1972 (PL 92-255), as amended, relating to nondiscrimination on the basis of drug 5 abuse; 6) The Comprehensive Alcohol Abuse and Alcoholism Prevention, Treatment and Rehabilitation Act of 1970 (PL 91-616), as amended, relating to nondiscrimination on the basis of alcohol abuse or alcoholism; 7) The Public Health Service Act of 1912, ss. 523 and 527 (42 USC ss. 690dd-3 and 290ee-3), as amended, relating to confidentiality of alcohol and drug abuse patent records; 8) Title VIII of the Civil Rights Act of 1968 (42 USC s. et seq.), as amended, relating to nondiscrimination in the sale, rental or financing of housing; 9) The Americans with Disabilities Act of 1990 (42 USC s. 1201 Note), as may be amended from time to time, relating to nondiscrimination based of disability; 10) Sees. 13-101, et seq., Monroe County Code, relating to discrimination based on race, color, sex, religion, disability, national origin, ancestry, sexual orientation, gender identify or expression, familial status or age; 11) Any other nondiscrimination provisions in any Federal or State statutes which may apply to the parties to, or the subject matter of, this agreement. SECTION 8. The following Articles are appended to the Lease Amendment and incorporated into the original agreement as Article XXIX through Article XXXXVII. ARTICLE XXIX - LEASEHOLD IMPROVEMENTS AND USE. Lessee has the right during the tenn hereof, at its own expense, at any time from time to time, to install, maintain, operate, repair and replace any and all trade fixtures and other Airport personal property useful from time to time in connection with its operation on the Airport, all of which shall be and remain the property of Lessee and may be removed by Lessee prior to or within a reasonable time after expiration of the tenn of this agreement; provided, however, that Lessee shall repair any damage to the premises caused by such removal. The failure to remove trade fixtures or other personal property shall not constitute Lessee a hold over, but all such property not removed within ten (l0) days after Lessee receives a written demand for such removal shall be deemed abandoned and thereupon shall become the sole property of the Airport. Lessee shall cause to be removed any and al1 liens of any nature arising out of or because of any construction perfonned by Lessee or any of its contractors or 6 subcontractors on the leased premises or because of the performance of any work or labor upon or the furnishing of any materials for use at said premises, by or at the direction of Lessee. ARTICLE XXX - BOOKS. RECORDS AND DOCUMENTS. Lessee shall maintain all books, records, and documents directly pertinent to performance under this agreement in accordance with generally accepted accounting principles consistently applied. Each party to this agreement or their authorized representatives shall have reasonable and timely access to such records of each other party for public records purposes during the term of the agreement and for four (4) years following the termination of this agreement. The County, acting through its Finance Director or other authorized representative, shall have the right to inspect and audit Lessee's books of accounts and other records directly generated at the Key West International Airport facility or otherwise pertaining to this agreement. Knowingly furnishing the County a false statement of its Annual Gross Revenues under the provision of this agreement will constitute a default by Lessee of this agreement and the County may, at its option, declare this lease terminated. Lessee retains the right to have its auditor or a representative assigned by its auditor present during any inspection or audit by the County. Ten (10) business days notice must be given of intent to audit by the County to allow Lessee's auditor sufficient time to schedule said presence. ARTICLE XXXI - GOVERNING LAW. VENUE. INTERPRETATION. This agreement shall be governed by and construed in accordance with the laws of the State of Florida applicable to contracts made and to be performed entirely in the State. In the event that any cause of action or administrative proceeding is instituted for the enforcement or interpretation of this agreement, the County and Lessee agree that venue will lie in the appropriate court or before the appropriate administrative body in Monroe County, Florida. The County and Lessee agree that, in the event of conflicting interpretations of the terms or a term of this agreement by or between any of them the issue shall be 7 submitted to mediation prior to the institution of any other administrative or legal proceeding. AR nCLE XXXIl- ATTORNEY'S FEES AND COSTS. The County and Lessee agree that in the event any cause of action or administrative proceeding is initiated or defended by any party relative to the enforcement or interpretation of this agreement, the prevailing party shall be entitled to reasonable attorney's fees, court costs, investigative and out-of-pocket expenses, as an award against the non-prevailing party, and shall include attorney's fees, court costs, investigative, and out-of-pocket expenses in appellate proceedings. Mediation proceedings initiated and conducted pursuant to this agreement shall be in accordance with the Florida Rules of Civil Procedure and usual and customary procedures required by the Circuit Court of Monroe County. ARTICLE XXXIII - ADJUDICA nON OF DISPUTES OR DISAGREEMENTS. Lessee and Lessor agree that all disputes and disagreements shall be attempted to be resolved by meet and confer sessions between representatives of each of the parties. If no resolution can be agreed upon within thirty (30) days after the first meet and confer session, the issue or issues shall be discussed at a public meeting of the Board of County Commissioners. If the issue or issues are still not resolved to the satisfaction of the parties, then any party shall have the right to seek such relief or remedy as may be provided by this agreement by Florida law. ARTICLE XXXIV - COOPERATION. In the event any administrative or legal proceeding is instituted against either party relating to the formation, execution, performance, or breach of this agreement, County and Lessee agree to participate, to the extent required by the other party, in all proceedings, hearings, processes, meetings, and other activities related to the substance of this agreement or provision of the services under this agreement. County and Lessee specifically agree that no party to this agreement shall be required to enter into any arbitration proceedings related to this agreement. A party who requests the other's party's participation in accordance with the terms of this 8 section shall pay all reasonable expenses incurred by the other party by reason of such participation. ARTICLE XXXV - COVENANT OF NO INTEREST. The County and Lessee covenant that neither presently has any interest, and shall not acquire any interest, which would conflict in any manner or degree with its performance under this agreement, and the only interest of each is to perform and receive benefits as recited in this agreement. ARTICLE XXXVI - CODE OF ETHICS. The County agrees that officers and employees of the County recognize and will be required to comply with the standards of conduct for public officers and employees as delineated in Section 112.313, Florida Statutes, regarding, but not limited to solicitation or acceptance of gifts; doing business with one's agency; unauthorized compensation; misuse of public position, conflicting employment or contractual relationship; and disclosure or use of certain information. AR TICLE XXXVII - PUBLIC ACCESS. The County and Lessee shall allow and permit reasonable access to, and inspection of, all documents, papers, letters or other materials in its possession or under its control subject to the provisions of Chapter 119, Florida Statutes, and made or received by the County and Lessee in conjunction with this agreement; and the County shall have the right to unilaterally cancel this agreement upon violation of this provision by Lessee. ARTICLE XXXVIII - NON- WAIVER OF IMMUNITY. Notwithstanding the provisions of Sec. 786.28, Florida Statues, the participation of the County and the Lessee in this agreement and the acquisition of any commercial liability insurance coverage, self-insurance coverage, or local government insurance pool coverage shall not be deemed a waiver of immunity to the extent of liability coverage, nor shall any contract entered into by the County be required to contain any provision for waiver. 9 ARTICLE XXXIX - PRIVILEGES AND IMMUNITIES. All of the privileges and immunities from liability, exemptions from laws, ordinances, and rules and pensions and relief, disability, workers' compensation, and other benefits which apply to the activity of officers, agents, or employees of any public agents or employees of the County, when performing their respective functions under this agreement within the territorial limits of the County shall apply to the same degree and extent to the performance of such functions and duties of such officers, agents, volunteers, or employees outside the territorial limits of the County. ARTICLE XXXX - LEGAL OBLIGATIONS AND RESPONSIBILITIES. Non-Delegation of Constitutional or Statutory Duties. This agreement is not intended to, nor shall it be construed as, relieving any participating entity from any obligation or responsibility imposed upon the entity by law except to the extent of actual and timely performance thereof by any participating entity, in which case the performance may be offered in satisfaction of the obligation or responsibility. Further, this agreement is not intended to, nor shall it be construed as, authorizing the delegation of the constitutional or statutory duties of the County, except to the extent permitted by the Florida Constitution, State Statute, and case law. ARTICLE XXXXI - NON-RELIANCE BY NON-PARTIES. No person or entity shall be entitled to rely upon the terms, or any of them, of this agreement to enforce or attempt to enforce any third-party claim or entitlement to or benefit of any service or program contemplated hereunder, and the County and Lessee agree that neither the County nor Lessee or any agent, officer, or employee of either shall have the authority to inform, counsel, or otherwise indicate that any particular individual or group of individuals, entity or entities, have entitlements or benefits under this agreement separate and apart, inferior to, or superior to the community in general or for the purposes contemplated in this agreement. ARTICLE XXXXII - ATTESTATIONS. 10 Lessee agrees to execute such documents as the County may reasonably require, to include a Public Entity Crime Statement, an Ethics Statement, and a Drug-Free Workplace Statement. ARTICLE xxxxm - NO PERSONAL LIABILITY. No covenant or agreement contained herein shall be deemed to be a covenant or agreement of any member, officer, agent or employee of Monroe County in his or her individual capacity, and no member, officer, agent or employee of Monroe County shall be liable personally on this agreement or be subject to any personal liability or accountability by reason of the execution of this agreement. ARTICLE XXXXIV - EXECUTION IN COUNTERPARTS. This agreement may be executed in any number of counterparts, each of which shall be regarded as an original, all of which taken together shall constitute one and the same instrument and any of the parties hereto may execute this agreement by signing any such counterpart. ARTICLE XXXXV - AIRPORT SECURITY. a. General. The Federal Transportation Security Administration is the federal agency primarily responsible for overseeing the security measures utilized by the airport owner pursuant to the relevant provisions of Chapter 49, United States Code, and regulations adopted under the authority of the Code, including but not limited to 49 CFR 1540, et seq. Violations of the statutes or regulations may result in severe civil monetary penalties being assessed against the airport operator. It is the intent of the airport operator that the burdens and consequences of any security violations imposed upon the airport operator as a result of actions by an airport tenant or the airport tenant's employees, agents, invitees, or licensees shall be borne by the airport tenant. b. Airport Tenant Defined. An airport tenant means any person, entity, organization, partnership, corporation, or other legal association that has an agreement with the airport operator to conduct business on airport property. The term 11 also includes an airport tenant as defined in 49 CFR 1540.5. Each signatory to this agreement, other than the airport operator, is an airport tenant. c. Airport Operator Defined. As used in this agreement, airport operator means Monroe County, Florida, its elected and appointed officers, and its employees. d. Airport Property Defined. Airport property shall mean the property owned or leased by, or being lawfully used by, the airport operator for civil aviation and airport-related purposes. For purposes of this agreement, airport property is the property generally referred to as the Key West International Airport, the Florida Keys Marathon Airport, or both as may be set forth in this agreement. e. Inspection Authority. The airport tenant agrees to allow Transportation Security Administration (TSA) authorized personnel, at any time or any place, to make inspections or tests, including copying records, to determine compliance of the airport operator or airport tenant with the applicable security requirements of Chapter 49, United States Code, and 49 CFR 1540, et seq. f. Airport Security Program. The airport tenant agrees to become familiar, to the extent permitted by the airport operator, with the Airport Security Program promulgated by the airport operator and approved by TSA, and also agrees to conform its' operations and business activities to the requirements of the Airport Security Program. g. Tenant Security Program. If permitted under TSA regulations, the airport tenant may voluntarily undertake to maintain an Airport Tenant Security Program as referred to in 49 CFR 1542.113. If the airport tenant voluntarily promulgates an Airport Tenant Security Program that is approved by TSA, such program, as may be amended and approved from time to time, shall be automatically incorporated into this agreement. h. Breach of Agreement. Should TSA determine that the airport tenant or one or more ofthe airport tenant's employees, agents, invitees, or licensees has committed 12 an act or omitted to act as required, and such act or omission is a violation which results in TSA imposing a civil penalty against the airport operator in accordance with TSA's Enforcement Sanction Guidance Policy, such determination and imposition of a civil penalty by TSA shall be considered a significant breach of this agreement. (1) Minimum Violation. If the violation is the first or second violation attributed to the airport tenant and is a civil penalty "minimum violation" as provided for in TSA's Enforcement Sanction Guidance Policy, the airport tenant may cure the breach by paying to the airport operator the total costs incurred by the airport operator, including any fines or penalties imposed, in investigating, defending, mitigating, compromising, or taking of remedial measures as may be agreed to by TSA, to include but not be limited to reasonable attorney's fees and costs incurred in the investigation, defense, compromising, mitigation, or taking of remedial action measures. If the violation is a third violation, or there are multiple violations in excess of two violations, that is or are a civil penalty "minimum violation," the airport tenant shall pay to the airport operator the total costs incurred by the airport operator, including any fines or penalties imposed, in investigating, defending, compromising, mitigating, or taking of remedial measures as may be agreed to by TSA, to include but not be limited to reasonable attorney's fees and costs incurred in the investigation, defense, compromising, mitigation, or taking of remedial action measures; and, further, the airport operator shall have the right to unilaterally cancel this agreement, such cancellation to be effective thirty (30) calendar days after receipt by the airport tenant of written notice of cancellation of this agreement by the airport operator. (2) Moderate Violation. If the violation is the first or second violation attributed to the airport tenant and is a civil penalty "moderate violation" as provided for in TSA's Enforcement Sanction Guidance Policy, the airport tenant may cure the breach by paying to the airport operator the total costs incurred by the airport operator, including any fines or penalties imposed, in investigating, defending, compromising, mitigating, or taking of remedial measures as may be agreed to by TSA, to include but not be limited to reasonable attorney's fees and costs incurred in 13 the investigation, defense, compromising, mitigation, or taking of remedial action measures; and, further, the airport tenant may cause all of airport tenant's employees involved in the airport tenant's business operations on the airport property to undergo such security training as may be required by the airport operator. The total cost of the training shall be paid for by the airport tenant. If the violation is a third violation, or there are multiple violations in excess oftwo violations, that is or are a civil penalty "moderate violation," the airport tenant shall pay to the airport operator the total costs incurred by the airport operator, including any fines or penalties imposed, in investigating, defending, compromising, mitigating, or taking of remedial measures as may be agreed to by TSA, to include but not be limited to reasonable attorney's fees and costs incurred in the investigation, defense, compromising, mitigation, or taking of remedial action measures; and, further, the airport operator shall have the right to unilaterally cancel this agreement, such cancellation to be effective thirty (30) calendar days after receipt by the airport tenant of written notice of cancellation of this agreement by the airport operator. (3) Maximum Violation. If the violation is the first violation attributed to the airport tenant and is a civil penalty "maximum violation" as provided for in TSA's Enforcement Sanction Guidance Policy, the airport tenant may cure the breach by paying to the airport operator the total costs incurred by the airport operator, including any fines and penalties imposed, in investigating, defending, compromising, mitigating, or taking of remedial measures as may be agreed to by TSA, to include but not be limited to reasonable attorney's fees and costs incurred in the investigation, defense, compromising, mitigation, or taking of remedial action measures; and, further, the airport tenant may cause all of airport tenant's employees involved in the airport tenant's business operations on the airport property to undergo such security training as may be required by the airport operator. The total cost ofthe training shall be paid for by the airport tenant. If the violation is a second violation, or there are multiple violations, that is or are a civil penalty "maximum violation," the airport tenant shall pay to the airport operator the total costs incurred by the airport operator, including any fines or penalties imposed, in investigating, defending, compromising, mitigating, or taking of remedial measures as may be agreed to by TSA, to include but not be limited to reasonable attorney's fees and 14 costs incurred in the investigation, defense, compromising, mitigation, or taking of remedial action measures; and, further, the airport operator shall have the right to unilaterally cancel this agreement, such cancellation to be effective thirty (30) calendar days after receipt by the airport tenant of written notice of cancellation of this agreement by the airport operator. (4) Mitigation of Breach. TSA has a policy of forgoing civil penalty actions when the airport operator detects violations, promptly discloses the violations to TSA, and takes prompt corrective action to ensure that the same or similar violations do not recur. This policy is known as the TSA Voluntary Disclosure Program Policy, and is designed to encourage compliance with TSA regulations, foster secure practices, and encourage the development of internal evaluation programs. The airport tenant agrees that upon detecting a violation the airport tenant will immediately report it to the airport operator. Should the TSA ultimately determine that the violation was committed by the airport tenant, or an employee, agent, invitee, or licensee of the airport tenant, but the violation should result in the issuance of a letter of correction in lieu of a civil penalty, then the airport tenant shall reimburse the airport operator the total costs incurred by the airport operator in investigating, defending, mitigating, or taking of remedial measures as may be agreed to by TSA, to include but not be limited to reasonable attorney's fees and costs incurred in the investigation, defense, mitigation, or taking of remedial action measures. A violation resulting in the issuance of a letter of correction shall not be considered to be a breach of this agreement by the airport tenant. (5) Survival of Subsection. This subsection shall survive the cancellation or termination of this agreement, and shall be in full force and effect. ARTICLE XXXXVI - Rights Reserved. Notwithstanding anything herein contained that may be, or appear to be, to the contrary, it is expressly understood and agreed that the rights granted under this agreement are nonexclusive and the Lessor herein reserves the right to grant similar privileges to another Lessee or other Lessees on other parts of the airport. Rights not specifically granted to Lessee by this Agreement are reserved to the County. 15 authorship. SECTION 9. All other provisions ofthe November 10, 1993 original Lease, April 19, 2000 Lease Extension Agreement and October 17, 2007 Consent to Assignment of Lease not inconsistent herewith, shall remain in full force and effect. IN WITNESS WHEREOF each party hereto has caused this agreement to be executed in duplicate by its duly authorized representative. (SEAL) A TTEST: DANNY L. KOLHAGE, CLERK BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA By By Deputy Clerk Mayor/Chairperson Date (CORPORA TE SEAL) ATTEST: LAST CHANCE GIFTS, LLC., a Florida Limited Liability Company By ru~~,~~mber Date~\ot 16 EXHIBIT A AIRPORT AGREEMENT FILED fOR '/FC(JfYl THIS CONTRACT OF LEASE is made an~4 e~~dPl~ on the lo+-h day O~OIft.~ ' 1993, by and between the BOARD mr-tD'ONTY CO ION F MONROE COUNTY ~',~m;OR.IPA, apolitical subdivision of the State of Florida, het;,~n.'i~It,~i<referred to as Lessor, and DIANE M. HEBERLE d/b/a THEf.J'1l'RPOWl'I:GI~'r SHOP, a partnership organized and existing under the laws of the State of Florida, hereinafter referred to as Lessee. WIT N E SSE T H: WHEREAS, Lessor owns an airport known as Key West Interna- tional Airport located in Monroe County, State of Florida, hereinafter called the "AIRPORT", and WHEREAS, Lessee is engaged in the business of maintaining a Gift and Sundry Shop, and WHEREAS, Lessee desires to obtain certain rights, services and privileges in connection with the use of the Airport and its facilities, and the Lessor is willing to grant and lease the same to Lessee upon the terms and conditions hereinafter stated, NOW, THEREFORE, for and in consideration of the premises and of the mutual covenants and agreements herein contained, and other valuable considerations, Lessor does hereby grant and lease unto Lessee, and Lessee does hereby hire and take from Lessor, certain premises, facilities, rights, licenses, services and privileges in connection with and on the Airport, as follows, to wit: ARTICLE I - PREMISES A. USE OF THE AIRPORT. Lessee shall be entitled to the use, in common with others authorized to do so, of the Airport and appurtenances, together with all facilities, equipment, improvements and services which have been or may hereafter be provided at or in connection with the Airport for common use in the operation of a Gift and Sundry Shop and has the right to maintain a Gift and Sundry Shop within the leasehold described hereafter in PART B which shall include: 1. The retail sale of gift and sundry items normally associated with an airport gift shop; 2. The retail sale of books, magazines, newspapers, products, tobacco products and personal grooming products, and 3. Provide such services normally furnished by a Gift and Sundry Shop and as are compatible with other activities of the Airport. B. LEASEHOLD. Lessee does hereby Lease, for its exclusive use the following described property: A 303 square foot gift shop located within the passenger terminal building at Key West Inter- national Airport as designated in Exhibit A attached hereto and made a part hereof. The Lessee shall promptly execute and comply with all statutes, ordinances, rule, orders, regulations and requirements of the Federal, State and/or County or City governments, any and all of their Departments and Bureaus, which are applicable to said premises. C. RIGHT OF INGRESS AND EGRESS. The right of ingress to and egress trom, but not the use ot, except as provided in this Lease, the premises and facilities referred to in Sections "A" and liB" inclusive above, for Lessee, its employees, agents, patrons, its suppliers of materials or furnishers of services, its equipment, vehicles, machinery or other property, without charge to Lessee, its employees, agents, patrons, suppliers of materials or furnishers of services or their said property except as herein otherwise provided; and provided further that nothing herein contained shall be deemed to limit Lessor's right to impose charges upon ground transportation services. ARTICLE II - TERM This Lease and all rights herein granted Lessee shall become operative and effective on October I, 1993, and terminate on September 30, 2000, unless sooner terminated as hereinafter provided. The Lessee shall have the option to renew the Lease subject to approval of Lessor and provided that written evidence of such renewal is given to the Lessor in writing ninety (90) days prior to the end of the term provided herein, said notice to be given in accordance with Article XXII. This agreement, further, ratifies the continuation of the terms of the lease entered October 9, 1991, for the period of October I, 1992 through September 30, 1993. ARTICLE III - RENTALS AND FEES A. Lessee agrees to pay Lessor at such places as Lessor may designate for the use of the premises, facilities, rights, licenses, services and privileges granted hereunder, the follow- ing rentals, fees and charges, all payable in monthly install- ments covering the ensuing calendar month, unless otherwise provided in this agreement. In the event that the commencement or termination of the term with respect to any of the particular premises, facilities, rights, licenses, services and privileges as herein provided falls on any date other than the first or last day of a calendar month, the applicable rentals, fees and charges for that month shall be paid for said month pro rata according to the number of days in that month during which said particular premises, facilities, rights, licenses, services and privileges were enjoyed; and the Lessee agrees to pay on or before the 15th 2 day of each month following the last day of each calendar month throughout the leasehold term: 1. Rent for 303 square feet at the terminal building to be used as .a gift shop at the rate of $17.93 per square foot per annum plus 71 state sales tax, including electricity. Rental rates are subject to revision each year in accordance with the airport standard rates and charges. 2. 51 of annual gross revenues in excess of $25,000.00 resulting from the conducting of a Gift and Sundry Shop business at Key West International Airport. Payment of charges under this subparagraph may be made annually or in installments. Annual gross revenues are determined on a calendar year basis with the first payment, if made annually, under this lease agreement being due on the excess of gross revenue over $25,000 for the period of January 1, 1993, through December 31, 1993. If payment of charges under this subparagraph is made once a year then it shall be made no later than February 28 of the year subsequent to the calendar year for which charges are due under this subparagraph. If payments are made in installments, then the final installment for any calendar year shall be paid no later than February 28 of the following year. B. The Lessee hereby agrees to maintain Financial Records utilizing normally accepted accounting procedures. The Lessee further agrees that the aforementioned records will be made available to the Lessor, it it so desires, for formal audit at most once each six (6) months. Furthermore, the Lessor has the right to inspect said records during normal business hours at any time. C. The Lessee shall charge prices comparable to those charged by other similar businesses in the community. D. TAXES AND ASSESSMENTS. Lessee shall pay all taxes and assessments which may be lawfully levied by the duly constituted taxing body upon Lessee with respect to its operation at the Airport. The Lessor agrees not to levy any license or permit fee or special assessment on Lessee that would restrict or interfere with the exercise and enjoyment of the rights and privileges granted herein; provided this shall not prevent the Lessor from making charges to Lessee for the use of the Airport, its facil- ities and services as herein specifically authorized. E. Lessee shall pay for all water and gas used by Lessee on said premises, and any license fees, and State, County and City taxes including the sales rental tax. F. DEFAULT FOR FAILURE TO PAY RENTALS, FEES AND CHARGES. 1. The prompt payment of the rent for said premises upon the terms named, and the faithful observance of the rules, regulations and directives which are by reference made a part 3 hereof, and of such other and further rules, regulations and/or directives as may be hereafter made by the Lessor are the con- ditions upon which the Lease is made and accepted, and any failure on the part of the Lessee to comply with the terms of this Lease, or any of said rules and regulations or directives, now in existence, or which may hereafter be prescribed by the Lessor, shall at the option of the Lessor, work a forfeiture of this Lease and of all of the rights of the Lessee hereunder. Upon said forfeiture, the Lessor, its agents or employees shall have the right to enter said premises, and remove all persons and property, if desired, therefrom forcibly or otherwise, and the Lessee hereby expressly waives any and all notice required by law to terminate tenancy, and also waives any and all legal proceedings to recover possession of said premises, and expressly agrees that in the event of a violation of any of the terms of this Lease, or of said rules, regulations or directives, now in existence, or which may hereafter be made, said Lessor, its agents or employees may immediately re-enter said premises and dispossess Lessee without legal notice or the institution of any legal proceedings whatsoever. 2. In addition to the acts of default elsewhere defined, the commission of any of the following acts by the Lessee shall constitute a default, and this Lease may be ter- minated by the Lessor immediately upon notice in writing to the Lessee: Abandon, desert, vacate or discontinue operations on the premises or petition for any bankruptcy or insolvency, or be adjudicated bankrupt, or make a general assignment for the benefit of creditors, or suffer a lien to be filed against the premises, or permit a receiver or trustee to come into possession without removing them, within a reasonable time. ARTICLE IV - SERVICES TO PUBLIC The Lessee agrees that in furtherance of the privileges and uses permitted hereunder: 1. To furnish good, prompt and efficient service adequate to meet all the demands for its service at the Airport; 2. To furnish said service on a fair, equal and nondiscrim- inatory basis to all users thereof; and 3. To charge fair, reasonable and nondiscriminatory prices for each unit of sale or service: PROVIDED that the Lessee may be allowed to make reasonable and nondiscriminatory discounts, rebates or other similar types of price reductions to volume purchasers. The work "service" as used in subsections 1, 2, and 3 of ARTICLE IV, shall include furnishing of labor, materials and supplies, related to Gift and Sundry Shop operation including the sale thereof, as well as furnishing service. 4 ARTICLE V - RIGHT TO LEASE PROPERTY Lessor represents that it has the right to lease the Air- port, together with all premises, facilities, rights, licenses, services and privileges herein granted, and has full power and authority to enter into this Agreement in respect thereof. ARTICLE VI - RIGHT TO PURCHASE SUPPLIES AND MATERIALS Lessee shall, except as herein otherwise provided. have the right to purchase or otherwise obtain personal property deemed by it to be required by or incident to. Lessee's operations. its exercise of the rights herein granted and its discharge of the obligations herein imposed, from any person, partnership. firm, association or corporation it may choose. Except as herein otherwise specifically provided. no charges, fees, or tolls. of any nature. direct or indirect, shall be charged by Lessor, directly or indirectly. against Lessee or its suppliers, for the privilege of purchasing, selling, using storing, withdrawing. handling. consuming, loading or unloading, or delivering any such personal property of Lessee by Lessee or its suppliers or for the privilege of transporting such personal property or persons to. from or on the Airport. Nothing in this Lease shall be deemed to restrict in any manner Lessor's right to charge any person, partnership, firm, association or corporation rentals for the use of Lessor's property or any improvements thereon or thereto where such use of said property or improvements are of a regular or permanent nature as distinguished from temporary or transitory nature or where such use is of such a nature as to constitute the perfor- mance of a commercial business at the Airport. ARTICLE VII - MAINTENANCE AND OPERATIONS BY LESSOR Except as otherwise specifically provided herein, Lessor during the term of this Lease, shall operate, maintain and keep in good repair the Airport, Terminal Building, vehicular parking space, all appurtenances, facilities and services now or hereaf- ter connected with the foregoing, including, without limiting the generality hereof, all field lighting and other appurtenances, facilities and services which Lessor has agreed to furnish and supply hereunder. Provided, however, that Lessor shall not be required to perform maintenance and make repairs occasioned by negligence of Lessee or its employees, fire or other casualty expected, and in which case Lessor may perform such maintenance or make such repairs and charge the reasonable cost of same to Lessee. Provided also that Lessor may abandon certain facilities which are no longer reasonably justified for proper and adequate operation of the Airport. Lessor shall keep the Airport free of obstructions, including the clearing and removal of grass, stones, or other foreign material, as reasonably necessary and 5 with reasonable promptness, from the runway, taxi-way and loading areas for the safe, convenient and proper use of the Airport, and shall maintain and operate the Airport in all respects in a manner at least equal to the highest standards or ratings issued by the Federal Aviation Administration, for airports of substan- tially similar size and character and in accordance with all rules and regulations of the Federal Aviation Administration and any other Governmental Agency having jurisdiction thereof, providing that nothing herein contained shall be deemed to require Lessor to enlarge the Airport or to make extensions or additions to the landing area, runway, taxi-way, or other appur- tenances of the Airport. ARTICLE VIII - MAINTENANCE AND OPERATIONS BY LESSEE Lessee hereby accepts the premises in the condition they are in at the beginning of this Lease, and agrees to maintain said premises in the same condition, order and repair as they are at the commencement of said term, excepting only reasonable wear and tear arising from the use thereof under this Agreement, and to compensate said Lessor immediately upon demand for any damage to said premises caused by any act or neglect of Lessee, or of any person or persons in their employ or under the control of the Lessee. The Lessee agrees to maintain the premises in a clean condition, and to maintain an adequate number of covered metal waste containers at suitable locations and shall deposit all trash and waste therein for proper disposition of such waste materials at the disposal grounds designated by the Lessor. It is understood and agreed that no signs or advertising and no awnings shall be erected on or in connection with the premises leased hereunder, unless the same shall be first submitted to and approved by the Lessor in writing. ARTICLE IX - GOVERNMENTAL FACILITIES It is expressly agreed that if funds for the provision, maintenance and operation of the Control Tower and/or other air navigation aids or other facilities required or permitted by the United States which are now, or may be hereafter furnished by the United States, are discontinued by the United States, Lessor shall not be required to furnish said facilities. ARTICLE X - RULES AND REGULATIONS Lessor shall have the right to and shall adopt and enforce reasonable rules and regulations, which Lessee agrees to observe and obey, with respect to the use of the Airport and appurte- nances; provided that such rules and regulations shall not be inconsistent with this Agreement nor with safety and with rules, 6 regulations and orders of the Federal Aviation Administration with respect to aircraft operations at the Airport, with proce- dures prescribed or approved from time to time by the Federal Aviation Administration with respect to the operation of aircraft of the Airport. Lessor shall provide Lessee with a copy of such rules and regulations from time to time. ARTICLE XI - DAMAGE OR DESTRUCTION OR PREMISES In the event the premises shall be partially damaged by fire, explosion, the elements, the public enemy or other casual- ty, but not rendered untenable, the same shall be repaired with due diligence by Lessor at his own costs and expense. If the damage shall be so extensive as to render such premises untenable but capable of being repaired within thirty (30) days, the same shall be repaired with due diligence by Lessor at its own cost and expense, and rent payable hereunder shall be proportionately paid up to the time as the premises shall be fully restored. In case the premises is completely destroyed by fire, explosion, the elements, the public enemy or other casualty, or so damaged that it will or does remain untenable for more than thirty (30) days, the Lessor shall be under no obligation to repair and reconstruct the premises, and rent payable hereunder with respect to Lessee's exclusive space in said premises shall be proportionately paid up to the time of such damage or destruction and shall thenceforth cease until such time as the premises may be fully restored. If within ninety (90) days after such damage or destruction, Lessor fails to notify Lessee of its intention to repair or reconstruct the damage or destroyed premises or to furnish a substantially equivalent facility, Lessee may give Lessor written notice of its intention to then cancel this Agreement in its entirety or to cancel, as of the date of such damage or destruction, such part of this Agreement as relates only to said premises. ARTICLE XII - CANCELLATION BY LESSOR The Lessor may cancel this Agreement by giving Lessee thirty (30) days advance written notice to be served as hereinafter provided upon or after the happening of anyone of the following events: a. The filing by Lessee of a voluntary petition in bank- ruptcy. b. The institution of proceedings in bankruptcy against Lessee and adjudication of Lessee as a bankrupt pursuant to such proceedings. c. The taking by a court of jurisdiction of Lessee and its assets pursuant to proceedings brought under the provisions of any Federal re-organization act. 7 d. The appointment of a receiver of Lessee's assets. e. The divestiture of Lessee's estate herein by other operation of law. f. The abandonment by Lessee of its conduct of Gift and Sundry Shop at the Airport for a period of sixty (60) days. g. The lawful assumption by the United States Government or any authorized agency thereof of the operation, control, or use of the Airport and facilities, or any substantial part or parts thereof, in such manner as substantially to restrict Lessee, for a period of at least ninety (90) days, from operating thereon for the conducting of a Gift and Sundry Shop. No waiver of default by the Lessor of any of the terms, covenants or conditions hereof to be performed, kept and observed shall be construed to be or act as a waiver of any subsequent default of any of the terms, covenants and conditions herein contained to be performed, kept and observed by the Lessee shall not be deemed a waiver of any right on the part of the Lessor to cancel this Lease for failure by Lessee to so perform, keep or observe any of the terms, covenants or conditions of this Lease. ARTICLE XIII - CANCELLATION BY LESSEE Lessee may cancel this Agreement any time that Lessee is not in default in its payments to Lessor hereunder, by giving Lessor sixty (60) days advance written notice to be served as hereinaf- ter provided, upon or after the happening of anyone of the following events: a. Issuance by any court of competent jurisdiction of an injunction in any way preventing or restraining the use of the Airport or any part thereof for airport purposes, and the remain- ing in force of such injunction for a period of at least ninety (90) days. b. The inability of Lessee to use, for a period in excess of ninety (90) days, the Airport or any of the premises, facil- ities, rights, licenses, services or privileges leased to Lessee hereunder, because of fire, explosion, earthquake, other casual- ty, or acts of God or the public enemy, provided that same is not caused by negligence or willful acts of failure to act on part of Lessee. c. The default by the Lessor in performance of any covenant or agreement herein required to be performed by the Lessor and the failure of Lessor to remedl such default for a period of ninety (90) days after receipt rom Lessee of written notice to remedy same; provided, however, that no notice of cancellation, as provided above, shall be of any force or effect if Lessor 8 shall have remedied the default prior to receipt of Lessee's notice of cancellation. d. The lawful assumption by the United States Government or any authorized agency thereof of the operation, control or use of the Airport and facilities, or any substantial part or parts thereof, in such a manner as substantially to restrict Lessee, for a period of at least ninety (90) days, from operating thereon for the conducting of a Gift and Sundry Shop. Lessee I s performance of all or any part of this Agreement for or during any period or periods after a default of any of the terms, covenants and conditions herein contained to be performed, kept and observed by Lessor, shall not be deemed a waiver of any right on the part of the Lessee to cancel this Agreement for failure by Lessor to so perform, keep or observe any of the terms covenants or conditions hereof to be performed, kept or observed. No waiver of default by Lessee of any of the terms, covenants or conditions hereto to be performed, kept and observed by the Lessor shall be construed to be or act as a waiver by Lessee of any subsequent default of any of the terms, covenants and con- ditions herein contained to be performed, kept and observed by the Lessor. ARTICLE XIV - INDEMNITY Lessee agrees to indemnify and hold harmless the Lessor from any and all claims for bodily injury (including death), personal injury, and property damage (including property owned by Monroe County) and any other losses, damages, and expenses (including attorney's fees) which arise out of, in connection with, or by reason of the Lessee utilizing the property governed by this lease agreement. The extent of liability is in no way limited to, reduced, or lessened by the insurance requirements contained elsewhere in this agreement. ARTICLE XV - INSURANCE Prior to the effective date of this lease, Lessee shall obtain, at his/her own expense, insurance as specified in the attached schedules, which are made a part of this lease agreement. The Lessee will not be permitted to use the lease property until satisfactory evidence of the required insurance has been furnished to the Lessor as specified below. Lessee shall maintain the required insurance, throughout the entire term of this lease agreement and any extensions, as specified in the attached schedules. Failure to comply with this provision may result in the immediate termination of the lease agreement and the return of all property owned by the Lessor. 9 Lessee shall provide, to the Lessor, as satisfactory evidence of the required insurance, either: Certificate of Insurance or A Certified copy of the actual insurance policy. Lessor, at its sole option, has the right to request a certified copy of any or all insurance policies required by this contract. All insurance policies must specify that they are not subject to cancellation, non-renewal, material change, or reduction in coverage unless a minimum of thirty (30) days prior notification is given to the Lessor by the insurer. The acceptance and/or approval of the Lessee I s insurance shall not be construed as relieving the Lessee from any liability or obligation assumed under this contract or imposed by law. The Monroe County Board of County Commissioners will be included as "Additional Insured" on all policies. They will also be named as "Loss Payee" with respect to Fire Legal Exposure. Any deviations from these General Insurance Requirements must be requested in writing on the County prepared form entitled "Request for Waiver of Insurance Requirements" and approved by Monroe County Risk Management. ARTICLE XVI - RISK All personal property placed or moved in the premises above described shall be at the risk of the Lessee or Owner thereof, and Lessor shall not be liable to the Lessee for damages arising from any act of negligence of any co-tenant, or of any other person whomsoever, except as stipulated hereinabove. ARTICLE XVII - QUIET ENJOYMENT Lessor agrees that, on payment of the rent and performance of the covenants and agreements on the part of Lessee to be performed hereunder, Lessee shall peaceably have and enjoy the leased premises and all rights and privileges of said Airport, its appurtenances and facilities granted herein. ARTICLE XVIII - SURRENDER OF POSSESSION Upon the expiration or other termination of this Lease or any renewal thereof, Lessee's right to use the premises, facil- ities, rights, licenses, services and privileges herein leased shall cease forthwith upon such expiration or termination surren- der the same. 10 Except as otherwise provided in ARTICLE XVIII, all struc- tures, fixtures, improvements, equipment and other property bought, installed, erected or placed by Lessee in, on or about the Airport and premises leased under this Lease shall be deemed to be personal and remain the property of the Lessee and Lessee shall have the right at any time during the term of this Agree- ment, or any renewal or extension hereof, to remove any or all of its property from the Airport; provided, however, that Lessee is not in default in its payments to Lessor hereunder and provided Lessee shall restore said premises to its original condition as at the beginning of occupancy, ordinary wear and tear, damage by elements, fire, explosion or other causes beyond control of Lessee excepted. Any and all property not removed by Lessee as set forth herein, shall thereupon become a part of the premises on which it is located and title thereto shall thereupon rest in the Lessor. Provided further that Lessor reserves the right to require Lessee to remove such improvements and property at Lessee's expense. ARTICLE XIX - DEFINITION OF TERMS Whenever the term Federal Aviation Administration is used in this Lease, it shall be construed as referring to the Federal Aviation Administration created by the Federal Government under the Federal Aviation Act of 1958, or such other Federal Govern- ment authority as may be the successor thereto or to be vested with the same or similar authority. Whenever the terms "person" and "persons" are used in the Lease, they shall be construed as including individuals, firms, corporations and other legal entities. When in this Agreement written approval by Lessor is required, except for assignment or modification of the terms of this lease which shall require written approval of the Board of County Commissioners, such written approval may be given by the Director of Airports for Lessor. ARTICLE XX - NO ASSIGNMENT Lessee shall not at any time assign this Agreement or any part thereof, nor sublet all or any portion of the leased prem- ises herein without written approval of Lessor; provided that the foregoing shall not prevent the assignment of this Agreement to any corporation with which Lessee may merge or consolidate, or which may succeed all or any portion of the business of Lessee. ARTICLE XXI - INSPECTION BY LESSOR Lessor shall be entitled, during reasonable hours, to enter the premises let under this lease and to inspect for damage or unsafe conditions. 11 ARTICLE XXII - NOTICES Notices to Lessor provided for herein shall be sufficient if sent by certified mail, return receipt requested, postage pre- paid, addressed to: Director of Airports, Monroe County Key West International Airport 3491 S. Roosevelt Boulevard Key West, Florida 33040 and notice to Lessee, if sent by certified mail, return receipt requested, postage prepaid, addressed to: The Airport Gift Shop 3495 South Roosevelt Boulevard Key West, Florida 33040 Attention: Diane Heberle or to such other respective addresses as the parties may desig- nate to each other in writing from time to time. ARTICLE XXIII - PARAGRAPH HEADINGS The paragraph headings contained herein are for convenience of reference and are not intended to define or limit the scope of any provision in this Lease. ARTICLE XXIV - INVALID PROVISIONS In the event any covenant, condition or provision herein contained is held to be invalid by any court of competent juris- diction the invalidity of any such covenant, condition or pro- vision shall in no way affect any other covenant, condition or provision herein contained; provided that the invalidity of such covenant, condition or provision does not materially prejudice either Lessor or Lessee in its respective rights and obligations contained in the valid covenants, conditions provisions of this Lease. ARTICLE XXV - COVENANT NOT TO GRANT MORE FAVORABLE TERMS Lessor covenants and agrees not to enter into any lease, contract or agreement with any other Gift and Sundry Shop with respect to the Airport containing more favorable terms than this Lease or to grant to any other Gift and Sundry Shop rights, privileges or concessions with respect to the said Airport which are not in accord to the Lessee hereunder unless the same terms, rights, privileges and concessions are concurrently made avail- able to the Lessee. ARTICLE XXVI - SUCCESSORS AND ASSIGNS BOUND BY COVENANTS All the covenants, stipulations and agreements in this Lease shall extend to and bind the legal representatives, successors and assigns of the respective parties hereto. 12 ARTICLE XXVII - NON-DISCRIMINATION CLAUSE The Lessee in exercising any of the rights or privileges herein granted to him shall not on the grounds of race, color or national origin discriminate or permit discrimination against any other person or groups of persons in any manner prohibited by Part l5 of the Federal Aviation Regulations, and the Lessor is hereby granted the right to take such action, anything to the contrary herein notwithstanding, as the United States may direct to enforce this non-discrimination covenant. ARTICLE XXVIII - INTERPRETATION OF LEASE Nothing in this Lease shall be construed or interpreted in any manner. whatsoever as limiting, relinquishing, or waiving of any rights of ownership enjoyed by Lessor in the Airport proper- ty, or in any manner waiving or limiting its control over the operation, maintenance, etc. . of Airport property or in derogation of such governmental rights as Lessor possesses, except as is specifically provided for herein. IN WITNESS WHEREOF. the parties have caused this Lease to be executed as of the day and year first above written. (SEAL) ATTEST: DANNY L. KOLHAGE. CLERK BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA Byila.LJ c. ~ Deputy C er J~..... THE AIRPORT GIFT SHOP BY~ ~. ~dl ane M. He er e. Lessee APPROVED AS TO m~..., ~~ c" j"'I;;'7,;J91C11 .~ /~ 3 13 Z -I fT1 ::::n -7 )> "/-- O-i rrl x -< .... .... Z -, )>~ ..- IfTl ;>~ ::0. -0 o ::u -I \ II I" ,q~___J: , ~ i~ ,- , ~~ ~: 0 a~: g ~ . ~ a t, 0 I - ~l__._ ~[~~ , '\: :~ ~'31 ~ ~ . ^. tR ~ ~ : r--I i B I u. I ' 0 ' L J!<----I I ~ I ~' 11 . '~ ~C ]l- cfF== q r--JI , ~ ~ n 1- --- -~-~~ I I --=--' I II ~ ~ ~ ~f,rr- h -.--- \1 <I'" ~ -\!---- ~:j e' I ~ ! I 1. ! Ii" - - -,I..,_~, r,I::Jl., , ni,l, l " \1 I(=~'---r "-:=;'-IT-I-:~---==Jl " " I I; _ : -. . "-- ~.dJ i I I I' :' ~ ,I <:." r I ' " Il '-=i! ;I~J!::' I r' II Ij :1: _~ i! !~ rl-----r i_-==-- f.: I i [i.Jr, 11 r~-II." I I III -- --=- I --=--~:.o-= I ,I GJ:l 11 I \ ~ ~ I I ~n [;,~ jl] )=] ~;~ ]------ l~_____= _~--_== L--__ ~~ ~~ ~~ ~ I~ ~ CI ') ^iWil 22. I'J'}] h. l'ri.-tine GENERAL LIABILITY INSURANCE REQUIREMENTS FOR LEASEIRENTAL OF PROPERTY OWNED BY TilE COUNTY BETWEEN MONROE COUNTY, FLORIDA . AND DIANE M. HEBERLE d/b/ a '1lIE AIRPORl' GIFT SHOP Prior- to the Or-ganizationlIndividual taking pos."lession of the pmperty governed by this leuo'ratlal agreement. the Organization/Individual shall obtain General Liability Insurance. Coverage shall be maintained thr-oughout the life of the contr-act and include. u a minimum: . Premises Operations . Pr-oducts and Completed Oper-ations . Blanket Contractual Liability . Personal Injury Liability . Expanded Definition of Property Damage . Fire Legal Liability (with limits equal to the fair market value ofthe leased pmperty.) The minimum limits acceptable shall be: $300,000 Combined Single Limit (CSL) If split limits arc pmvided, the minimum limits acceptable shaJl be: $100.000 per- Per-son $300,000 per- Occurrence $ 50,000 Property Damage An Occurrence Fonn policy is preferred. Ifcoverage is pr-ovided on a Claims Made policy, its provisions should include coverage for claims filed on or afier- the effective date of this contra~t. In addition, the period for which claims may be reported should extend for a minimum of twelve (12) months following the tenninalion of the Lease/Rental Agreement. The Monroe County Board of County Commissioners shall be named as Additional Insured on all policies issued to satisfy the above requirements. ) Admini_i"", In"bud;.", 1147(I'J.I 18 ^1...iI22.1'J1J.I hll'rinluIG j . I WO ({KERS' COMPENSATION INSUUANCE REQUJl{EMENTS FOR CONTRACT LEASE GIFT SHOP UETWEEN MONROE COUNTY. IrLORIDA ANO DIANE HEBERLE dba THE- AIRPOR4 GIFT SHOP Prior to the commencement of work governed by this contract, the Contractor shall obtain Workers' Compensation Insurance with limits sufficient to respond to the applicable state statutes. In addition, the Contractor shall obtain Employers' Liability Insurance with limits of not less than: $500,000 Bodily Injury by Accident $500,000 Bodily Injury by Disease, policy limits $500,000 Bodily Injury by Disease, each employee Coverage shall be maintained tflroughoulthe entire term of the contract. Coverage shaJl be provided by a company or companies authorized to transact business in the state of Florida and the cOmpany or companic.c; must maintain a minimum rating of A-VI, as assigned by the A.M. Best Company. If the Contractor has been approved by the Florida's Department ofL...OOr, as an authorized self- insurer, the County shall recognize and honor the Contractor's status. TIle Contractor may be required to submit a Letter of Authorization issued by the Department of Labor and a Certificate oflnsurance, providing details on the Contractors Excess Insurance Program. If the Contractor participates in a self-insurance fund, a Certificate of Insurance will be required. In addition. the Contractor may be required to submit updated financial statements from the fund upon request from the County. Adlnini.....i.... Imtnldion 1/4709.1 40 '\I'ril 22. 1ft' Isll~ MONROE COUNTY. FLORIDA RCllucst For W:Ii\'cr of Insuranc(: RC(luirClUcn~lI II is requestcd thallhe insurance requirements. as specified in the County's Schedule of Insurance Requirements. be waived or modilicd on the following contract. Contractor: Springboard F.nr~~prj&e&, Iue /n1anp HphPTlp Contract for: Airport Gift Shop Address of Contractor: 3495 S. Roosevelt Blvd. Key West, FL 33040 Phone: 294-5055 Scope of Work: Retail Gift Shop Reason [or W:\i\'er: Only two employees who do not do any manual labor, clerks position who also cashiers. Request Workers Compensation requirement be lower to Fla State Statute SignClture of COlltractor: ~ ;e,. #d Approved K Not Approved Risk Man3gelllent (0 W~~ Date I / r; I q i COUllty Adminislratm aPIx:al: Approved: Not Approved: Date: Doard of COIlIII)' COJIIlllissioners <IPlleal: Approved: NOI Approved: Meeting Dale: WAIVER EXHIBIT B LEASE EXTENSION AGREEMENT , This Lease Extension Agreement is entered into on 'this .Jfi!!! day of April, 2000, by and between Monroe County, a political subdivision of the State of Florida (Lessor) and DiaIIe M. Heberle d/b/a The Airport Gift Shop, a partnership organized and existi~ under the Laws of Florida (Lessee). WITNESSETH: WHEREAS, on November 10, 1993, 'the Lessor and Lessee entered into a lease whereby 'the Lessee was to operate a gift shop at Key West International Airport and, which lease is scheduled to expire on September 30, 2000; and WHEREAS, 'the parties have determined 'that it is in their mutual benefit:ial int'erat to extend 'the 1993 lease for an additional 16 years; now, 'therefore, IN CONSIDERA TION of the mutual covenants and promises set forth below, the parties agree as follows: Section 1. A copy of the November 10, 1993 lease ('the original lease) is attach~. to' 'this lease extension agreement and mada a part of it. Section 2. Article n - Tenn, of 'the original lease, is modified to extend the termination date to Slptember 30, 2016. Section 3. Artit:1e m - Rentals and Fees, subparagraph Al of 'the original lease, is modified to increase 'the per square foot rental amount to $40.93. Section 4. Article m - Rentals and Fees, subparagraph A2 of the original I.., is modified to remove 'the exemption of the first $25,000 from 'the requirement that Lassee pay Lessor 5"X, of Lessee's annual gross revenues. Five percent of all Lessee's annual gross revenues must be paid to Lessor. Section 5. Except as provided in sections 2 - 4 of 'this lease extension agreement, in aU o1Nr respects 'the terms and conditions of the original lease remain in full force and effect. . IN WIlNESS WHEREOF, 'the parties hereto have set 'their hands and seals the day and year first above written. By Mayor/Oulirperson TIt! rT 6IFT SHOP ~ ,/JIt&~ 1t1./#k ~ Diane M. Heberle, Lessor MI= ATTEST: ~ EXHIBIT C CONSENT TO ASSIGNMENT OF LEASE This Consent to Assigmnent is entered into this / J ~y of deAL 2007, by and betw'een Monroe County, a political subdivision of the State of Florida, hereafter County, Diane M. Heberle/Springboard Enterprises, Inc., a Florida corporation d/b/a "The Airport Gift Shop", hereafter Assignor, and Last Chance Gifts, LLC, a Florida limited liability company, hereafter Assignee, the parties agreeing as follows: 1. The County leases approximately 303 square feet of gift shop space located within the passenger terminal building at Key West International Airport, through a Contract of Lease dated November 10, 1993, and extended by Lease Extension Agreement dated April 19, 2000 for an additional sixteen (16) years, and amended on November 10, 1993 attaching Exhibit A-I, in place of Exhibit A depicting the location of the airport gift shop. Copies of the original Lease, Lease Extension Agreement, and Amendment are attached and incorporated into this Consent to Assignment. 2. Article XX of the Lease provides that the Lessee may assign the Lease with written approval of the Board of County Con;unissioners for Monroe County. 3. The Assignor and Assignee have entered into an Agreement for Purchase and Sale of Assets which contract includes an assignment to Assignee of all the Assignor's right, title, obligation, and interest in the Lease. 4. In consideration of its consent from Board of County Commissioners, to the assignment Assignee agrees to be bound by all the terms and conditions of the original Lease, as extended and amended. IN WITNESS WHEREOF, the parties have set their hands and seals as of the date first written above. (SEAL) ATTEST: DANNY 1. KOLHAGE, CLERK By: ihaULa. ~)60A\.-kJ Deputy Clerk LESSOR: BOA OFM By: Mayor Mario Di Gennaro ASSIGNOR: DIANE M. HEBERLE / SPRINGBOARD ENTERPRISES, INC. a Florida corporation BY~~ iane Heberte, individually and as President of S' a~lit V 0 AS T ASSIGNEE: LAST CHANCE GIFTS, L~, a Florida limited liability com@D~ :::n(""):.: f~ C:~ c,:-'r- <::.'J r.',;. ~ ~ ...., o ("'") -c ,,) N l- r "' .,-" "'1 r', 'J - " em~ ~ :.-. 'e l>o r,'! ;, ) - , 11 () ~: ,l ~::'J -.;:; I o{, r/cq . ., ,- ./' - .. .,,~ L_ L t ., 'y. . T . ..; r nU . - - - - - -...... .'V--- - ,;...;::11::'; ~ L..i~ ~~'':- ~ J , ~ ..a..., _L-. , lL. .&.. .... .. L . .'1' . ". c-- : _ '~__~~~I.:" ., ~r::..r~'~,,::-:~- . >. .... , . - - - .-, l !'rJt..- _\- ~ ~ "9 ~~ -tfl ~~ .. EXHIBIT D2 RenO\<41ted Pr."llisting Passenger Terminal 8u,Iding : ft Sho!J J9C "Qua'l'! fee! . . .., ',.11 , . '- f. - -.- .-1 I ~'J ~ . . _--L ..t_ H Ii D ~;) ~ '.9" .'= ~~ ~c::-:::) .;:?~ or' ,"-' - - r -- "'T" I I w1 T -_..- -- . . t A ~ ~._- ._'~._--"'- --->-- , -:I